NextGear Capital UK officially opens for business in Chester

NextGear Capital UK has officially opened for business in Chester in new 5,500 square foot premises in Kingsfield Court on the Chester Business Park.

Lord Mayor of Chester Jill Houlbrook and NextGear Capital’s US company president Brian Geitner were on hand to cut the ribbon to announce the official opening of the company, which is set to recruit 50 staff in its first year of trading.

The US parent is making a £3m first year investment in the UK business, which is offering an innovative IT-based vehicle stocking plan designed to offer a faster and more efficient service for dealers. NextGear Capital says it expects to fund 100,000 used vehicles by 2015 and has the capability of bringing more funding into the market based on demand.

“Our system revolutionises dealer stocking in the UK at a time when motorists are buying more used cars than in any time in the last five years,” explained David Mercer, NextGear Capital UK’s managing director.

NextGear’s IT systems give dealers the ability to view and manage their stocking plan online via PC or tablet, which assists with budgeting and profitability.

Once a dealer has been approved for a NextGear Capital stocking plan they can buy cars or vans up to an agreed limit from the network of auction or vehicle wholesale partners signed up to the programme. The partner auction automatically transfers the purchased vehicle onto the individual dealer’s stocking plan and NextGear Capital manages any relevant administration, including payment for the car.

As NextGear Capital buy the vehicle they retain the vehicle’s title and dealers are charged fees based on how long it has been in their stock, an approach which the company says will improve a dealer’s cash flow giving them the ability to stock and sell more cars.

NextGear Capital, with the partner auction, manages all vehicle sale administration on the dealer’s behalf, but if a vehicle does not sell it can be entered back into a partner auction sale without settlement being requested up front.